House Passes "Saving Energy Through Public Transportation Act" To Authorize New Funds For Transit -- Congress Begins Action On Appropriations Bills
July 3, 2008
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House Authorizes Extra $1.7 Billion In Funding For Transit
On June 26, the U.S. House of Representatives passed the "Saving Energy Through Public Transportation Act of 2008" (H.R. 6052) by a vote of 322-98. Representatives James L. Oberstar (D-MN), Chairman of the House Committee on Transportation and Infrastructure, John L. Mica (R-FL), Ranking Member of the Committee, and Peter M. DeFazio (D-OR), Chairman of the Subcommittee on Highways and Transit, are the bill's original co-sponsors. The legislation authorizes $850 million for both Fiscal Year (FY) 2008 and 2009 to help transit systems cope with rising fuel costs and to promote public transportation ridership as a means to reduce domestic fuel consumption. Of the amounts authorized in the bill, $750 million would be distributed through the urbanized area formula program and $100 million would be added to the rural transit formula program each year. The funds can be used by transit agencies for operating or capital costs to expand service or reduce fares, to avoid fare increases or service cuts that would otherwise result from increased costs for fuel, or to meet additional transportation-related equipment or facility maintenance expenses caused by increased ridership.
If enacted, the legislation would not make funds immediately available. Chairman DeFazio had drafted an amendment that would have made funding immediately available by drawing down balances from the Mass Transit Account of the Highway Trust Fund, but the amendment was not allowed under the rule. As a result, if the bill is enacted, House and Senate Appropriations Committees would need to provide general funds in a future appropriations measure.
During debate on the House floor, two amendments supported by APTA were added to the bill. First, an amendment offered by Chairman Oberstar expanded the eligible use of the funds to help transit agencies defray the high cost fuel without having to raise fares or reduce service. The second amendment, offered by Representatives James McGovern (D-MA) and Tom Davis (R-VA), equalizes the transit tax benefit, which provides federal tax incentives for transit riders and employers that subsidize employee transit trips, with the federal tax benefit for parking.
Further action by Congress on the bill is not certain. The Senate is not expected to consider a similar measure, and the Bush Administration has stated opposition to the bill based on the use of federal funds for the operating purposes outlined in the bill.
Contact Homer Carlisle of APTA's Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com for additional information regarding H.R. 6052.
House Appropriations Committee Acts On FY 2009 Thud Bill
The House Appropriations Subcommittee on Transportation and Housing and Urban Development approved the initial draft of the FY 2009 Transportation and HUD Appropriations bill on June 20, 2008. Subcommittee Chairman John Olver (D-MA) and Ranking Member Joe Knollenberg (R-MI) announced during the markup that the bill provides $10.3 billion for the federal transit program, the full level authorized and guaranteed by SAFETEA-LU. If approved, this record-setting level of funds would represent a $700 million increase over the amount provided in FY 2008. Currently, the bill does not include project earmarks. These will be added when the bill is considered by the full House Committee on Appropriations, which is scheduled to occur the week of July 7. The Senate Appropriations Subcommittee on Transportation and Housing and Urban Development is expected to consider the FY 2009 Appropriations bill shortly after the July 4 recess, as well. However, with legislators predicting an early end to the Congressional session due to the fall elections, it is uncertain whether the final bill will be enacted into law this year.
For more information on the FY 2009 Appropriations process, please contact Paul Dean of APTA's Government Affairs Department at (202) 496-4887 or email pdean@apta.com.
Multiple Climate Bills Under Development In House
On June 19, Representatives Lloyd Doggett (D-TX), Earl Blumenauer (D-OR) and Chris Van Hollen (D-MD) introduced the "Climate MATTERS Act of 2008" (H.R. 6316). The bill creates a cap-and-trade system to regulate greenhouse gas emissions similar to other climate proposals like the Senate's Lieberman-Warner legislation (S. 3036) and Representative Ed Markey's (D-MA) "Investing in Climate Action and Protection Act" (H.R. 6186). The new Doggett bill provides roughly 2 percent cap-and-trade revenue to investment in transit, transportation alternatives and smart growth efforts. All three climate proposals have included significant transit investment, and future iterations could yield even higher levels of funding for public transportation. The Doggett bill is innovative in that it utilizes tax law to conduct a cap-and-trade system, giving the House Committee on Ways and Means jurisdiction over a portion of climate issues. In the House of Representatives, the Energy and Commerce Committee is considered the primary committee of jurisdiction over climate change matters, but that committee still is evaluating options to address global warming and has not yet introduced legislation.
APTA will continue to work with House and Senate committees to increase public transportation investment in climate change bills. One-third of carbon dioxide emissions in the United States are produced by the transportation sector, but current proposals dedicate less than 5 percent of cap-and-trade revenue to address transportation-related emissions. During the Senate's consideration of the Lieberman-Warner bill, APTA recommended that no less than 6 percent of cap-and-trade revenue be dedicated to investment in transit and no less than 4 percent to local, regional, and state efforts to curb growth in vehicle travel. To view APTA's recommendations for Lieberman-Warner and an explanation of the need for transit investment in climate change legislation, click here.
Contact Homer Carlisle of APTA's Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com for additional information regarding climate change matters.
Amtrak Reauthorization Legislation
On June 11, the House of Representatives approved H.R.6003, the "Passenger Rail Investment and Improvement Act of 2008" by a vote of 311-104. The bill authorizes $14.4 billion for Amtrak over a five year period. The bill would significantly increase both Amtrak operating and capital grant funding. In addition, the legislation:
creates a state capital grant program for intercity passenger rail projects;
helps Amtrak to reduce its debt;
authorizes funding for grants to states and/or Amtrak to finance the construction and equipment for high-speed rail corridors;
directs the Secretary of Transportation to issue a request for proposals for high-speed rail projects operating between Washington, D.C. and New York City; and
establishes a forum at the Surface Transportation Board to help mediate disputes between commuter rail providers and freight railroads over the use of freight rail tracks or rights-of-way.
The bill also would authorize the Secretary of Transportation to provide $1.5 billion in grants over the next 10 years to the Washington Metropolitan Area Transit Authority (WMATA) for infrastructure maintenance and expansion. The funds would require that Virginia, Maryland, and the District of Columbia enact dedicated funding of $1.5 billion over the same period and meet a 50/50 local match requirement for the funding.
If enacted into law, all funds authorized in the legislation would require subsequent Congressional appropriations. The Administration opposes the Amtrak legislation because it argues the bill does not provide any meaningful reforms in Amtrak's governance or operations and will not allocate resources based on the demand for passenger rail service. Last October, the Senate passed a separate Amtrak authorization bill, which contains different funding levels and does not include a number of policy provisions included in the House version. Therefore, House and Senate sponsors will need to convene a conference committee to develop a compromise version of the bill to present to both chambers for a final vote before the measure can be sent to the President for his signature.
For more information on Amtrak reauthorization, please contact Tom Yedinak of APTA's Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.
House And Senate Approve Transit Security Funding
On June 24, the House Committee on Appropriations approved the FY 2009 Department of Homeland Security Appropriations bill. The legislation includes $400 million for transit and rail security grants, the same level of funding as last year. This amount is $225 million more than the Administration requested in their budget, but $350 million short of the level authorized in H.R.1, the "9/11 Commission Recommendations Act of 2007". In addition, the legislation includes language recommended by APTA to prohibit a local match requirement by the Department of Homeland Security (DHS). It also directs DHS to distribute the grants directly to transit authorities instead of through the states.
On June 19, the Senate Committee on Appropriations approved its version of the bill which also provides $400 million in funding for transit and rail security grants. The bill also would prohibit a local match by DHS, but does not direct DHS to distribute the grants directly to the transit authorities. It is expected that both bills will go to the House and Senate floors for further consideration later in July. However, it is unclear whether the Congress will attempt to enact the bill into law prior to the end of the current Congressional session.
For more information on FY 2009 Transit Security funding, please contact Tom Yedinak of APTA's Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.
Highway Trust Fund Fix Stalled In Congress
Attempts to add general fund revenues to the Highway Trust Fund (HTF) to address projected shortfalls in FY 2009 were thwarted in Congress last week. Senate Finance Committee Chairman Max Baucus (D-MT), Ranking Member Charles Grassley (R-IA) and Transportation and HUD Appropriations Subcommittee Chairman Patty Murray (D-WA) led the effort to attach a provision to the "must-pass" Federal Aviation Administration Extension bill that would have facilitated up to an $8 billion transfer from the general fund to the HTF to address the looming insolvency. However, the provision was stripped from the bill when it reached the House of Representatives over objections by a number of Republicans. Opponents to the fix based their objections on the notion that the proposal only offered a temporary, tax-payer funded "bail-out" of the HTF, and that the pending insolvency needs a long-term solution.
Supporters of the HTF fix have indicated they will continue to seek its passage throughout the remainder of this legislative session. New projections by the Congressional Budget Office due in the next week are expected to show that absent new revenues, the Highway Account of the HTF will reach a "zero balance" sometime in the middle of FY 2009. Therefore, a fix will be necessary to fund the Highway Program at SAFETEA-LU authorized levels next year.
APTA supports the proposals advanced by the Senate Finance Committee to fix the HTF as a preferable alternative to transferring surplus balances from the Mass Transit Account to cover the shortfall, as proposed by the Administration earlier this year.
For more information on the Highway Trust Fund Fix, please contact Paul Dean of APTA's Government Affairs Department at (202) 496-4887 or email pdean@apta.com.
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